Olefin plant extension nearer at hand

“We have taken another major step towards the key milestone in our plans to develop the petrochemical business, which is the olefin plant extension. Petrochemicals have enormous potential we are determined to make the most of. Our capital projects to develop the petrochemical area will solidify our position on the European market while providing tangible benefits to the Polish economy, turning it from an importer into a net exporter of petrochemicals,” says Daniel Obajtek, President of the PKN ORLEN Management Board.

The technical consultancy and PMC+ contract has been signed with Fluor, one of the world’s leading providers of engineering & design services. It guarantees proven, tailored-to-fit solutions designed to support complex projects in the en’ergy and fuel sector. The services will involve end-to-end project management across all functional areas – from managing its timescales, costs, contractors and risks, through ensuring work safety, technical support and supervision of technical design standards, to managing procurement and actual execution. The works will engage a fully integrated team, made up of PKN ORLEN employees and a PMC+ consultant.

“Given the scale of our venture, we have decided to deploy a consulting service within the PMC+ framework. In the case of particularly large projects, such as the olefin plant extension, this solution is a globally applied standard. Our contract with Fluor will fully integrate the project management, offering potential synergies and facilitating knowledge flows between PKN ORLEN and the contractor,” stresses Zbigniew Leszczyński, Member of the PKN ORLEN Management Board, Development.

Thanks to the PMC+ collaborative work model, PKN ORLEN will gain know-how in managing integrated capital projects. The model will also help develop and enhance the company’s in-house capabilities to benefit its further projects. In addition, by effectively employing the industry’s best business practice, it will allow PKN ORLEN to strengthen its competitive advantage on the market.

The value of the petrochemicals and base plastics market is forecast to double by 2030. Demand for petrochemicals is set to rise, fuelled by the world’s expanding population, economic growth, and shifts in demand for industrial raw materials. Therefore, PKN ORLEN is poised to take full advantage of its potential in petrochemicals.

Investments under the Petrochemicals Development Programme are expected to add some 30% to PKN ORLEN’s existing capacity, while ensuring a marked improvement in Poland’s overall trade balance in petrochemicals. The programme will be pursued\ until the end of 2023. Next year will witness the launch of a Research & Development Centre to generate a range of proprietary technologies. The ongoing projects to expand the phenol capacity and construct an aromatic derivatives plant are also at an advanced stage. Once they are completed, PKN ORLEN’s annual EBITDA is estimated to grow by PLN 1.5bn, translating into measurable benefits for the company and its shareholders.